Skip to main content
12.1. Replenishment Model
Hussain Qureshi avatar
Written by Hussain Qureshi
Updated over a week ago

Businesses commonly offer subscriptions for products with replenishing SKUs, like shampoos, cosmetics, and coffee. A common business model that covers almost all the types of subscription offerings is a replenishing coffee model.

  1. A pay-as-you-go subscription model. This is the most commonly offered type of subscription model in which the customer pays at the same time their order is generated. Assume that you are running an online coffee shop and your consumer is needing coffee on a monthly basis. Our system will make sure they are charged at the same time and an Unfulfilled order is generated so the merchant can fulfill it, accordingly.

  2. Pre-paid subscription without auto-renew option This model is suitable for big bundles or limited-time products. In a prepaid subscription model, payments are collected upfront and customers' orders are fulfilled overtime.. One common example is a prepaid model, in which 6-months payment is charged upfront, and every month there is a fulfillment sent out to the customer. At the end of the 6-months period, the customer will decide, as per their need or experience, if they wish to proceed with that subscription or not.
    This model is also useful in testing the subscription behavior of a product. If a new product is launched, a merchant can offer it on a prepaid non-auto renew plan. This way, when the subscription ends, the customer can prevent its renewal if the subscription model is not performing well.

  3. Pre-paid model with auto-renew. This model is exactly the same as the prepaid model discussed above. The main difference is in terms of auto-renewal. A merchant can set an automatic renewal of the subscription model.
    The most common model type offered is the annual subscription plan. In this model, payment for 12-months is collected upfront and there are fulfillments every month, with an automatic renewal after 1 iteration (12 months) has ended.

Did this answer your question?